The EDC Says...

NS: Nova Scotia will lead nation in export growth, says EDC
By Jennifer Taplin, Metro Halifax

Source: Metro Halifax, May 27, 2010

[HALIFAX, NS] — Nova Scotia’s exports will not only rebound but outperform the rest of the country by next year, according to Export Development Canada (EDC).

The EDC is predicting a 12 per cent growth for this province’s exporters and 17 per cent growth in 2011, which is better than any other province. Nova Scotia’s exports shrunk by 26 per cent in 2009.

“Nova Scotia’s strong performance is based on improved demand from the United States, which translates into a broad-based rebound of Nova Scotia’s main export sectors including natural gas, fish, tires, and newsprint,” said Peter Hall, EDC’s chief economist, in a release yesterday. “Natural gas exports in particular will drive the province’s exceptional export growth in 2011.”

He’s predicting the energy sector will grow 21 per cent this year and a whopping 57 per cent in 2011.

But this province’s biggest export sector remains agrifood, which has less impressive growth numbers (two per cent in 2010 and eight per cent in 2011).

“Although EDC does not anticipate a dramatic rebound in prices for lobster or crab, ground fish, herring and shrimp stocks have remained stable and crab has increased,” Hall said.

Earlier this month, Clearwater Seafoods reported first-quarter sales of $62.7 million. The company, one of the big exporters in the HRM, said strong volumes, price increases and lower costs helped to offset the impact of a high Canadian dollar.

It should also be a busy year for the Michelin plant in Waterville. Hall said high sales activity together with low inventory levels will drive demand for tire exports.

“As a result, we expect the Michelin plant should operate at full capacity starting this year,” he said.

Growth on the rise:
• Canadian exports are expected to grow by 11 per cent in 2010 and 7.6 per cent in 2011.
• National economic growth is expected to hit 2.5 per cent growth this year and 2.9 per cent next year.
• Globally, economies are expected to grow by 3.7.